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How Changes in Unemployment Benefit Duration Affect the Inflow Into Unemployment
van Ours,J.C. Tuit,S.
van Ours,J.C.
Tuit,S.
Abstract
We study how changes in the maximum benefit duration affec the inow into unemployment in the Netherlands. Until August 2003, workers who became un- employed after age 57.5 were entitled to unemployment benefits until the age of 65, after which they would receive old age pensions. This characteristic made it attractive for workers to enter unemployment shortly after age 57.5 rather than shortly before. Indeed, we find a peak in the inow into unemployment for workers after age 57.5. From August 2003 onwards the maximum benefit durations were reduced. We find that shortly after 2003 the peak in the inow disappeared.
Description
Subsequently published in Economics Letters (2010) Pagination: 20
Date
2010
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Publisher
Microeconomics
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2010-07.pdf
Adobe PDF, 182.9 KB
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Keywords
Unemployment insurance, potential benefit duration, unemployment inflow, H55 - Social Security and Public Pensions, J64 - Unemployment: Models, Duration, Incidence, and Job Search, J65 - Unemployment Insurance ; Severance Pay ; Plant Closings, SDG 1 - No Poverty
Citation
van Ours, J C & Tuit, S 2010 'How Changes in Unemployment Benefit Duration Affect the Inflow Into Unemployment' CentER Discussion Paper, vol. 2010-07, Microeconomics, Tilburg.